Bombardier Presentation

1. About Bombardier Bombardier is the world’s only manufacturer of both planes and trains. Looking far ahead while delivering now, Bombardier is evolving mobility worldwide and making it easier for people to connect with one another. The vast offering of products includes high speed trains, public transit that’s smarter than ever, category-defining business jets and commercial aircraft designed for the realities of today. Bombardier answers the call for more efficient, sustainable and enjoyable transportation everywhere. All the vehicles, services and, most of all, the employees are what make this company a global leader in transportation. Bombardier partner with customers, local organizations and all stakeholders to help build communities and improve quality of life wherever we do business. Bombardier is present in more than 60 countries, with 76 production and engineering sites among them. 70,000 employees push mobility forward by creating aerospace and rail transportation products adapted for the travellers of today and tomorrow. Bombardier is headquartered in Montréal, Canada. In the fiscal year ended December 31, 2011, we posted revenues of $18.3 billion USD. Bombardier Transportation With 62 production and engineering sites in 25 countries and more than 40 service centres at customer premises across the world, Bombardier Transportation is the global leader in the rail industry. They cover the full spectrum of rail solutions, ranging from complete trains to sub-systems, maintenance services, system integration and signalling.

The installed base of rolling stock exceeds 100,000 rail cars and locomotives worldwide. With 36,200 employees continue a proud tradition of delivering ingenious rail transportation solutions, including: Rail vehicles - automated people movers, monorails, light rail vehicles,

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advanced rapid transit, metros, commuter/regional trains, intercity/high-speed trains and locomotives Propulsion and controls - complete product portfolio for applications ranging

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from trolley buses to freight locomotives. Train control and management Systems •

Bogies - product portfolio for the entire range of rail vehicles

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Services - fleet maintenance, operations and maintenance (O&M), vehicle refurbishment and modernization, and material management Transportation

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systems -

customized

“design-build-operate-maintain”

transportation system solutions Rail control solutions - advanced signalling solutions for mass transit and

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mainline system Bombardier Aerospace With more than 33,600 employees and a leadership position in global markets, Bombardier Aerospace designs, manufactures and supports innovative aviation products for the business, commercial, specialized and amphibious aircraft markets. They have the most comprehensive aircraft portfolio and hold the number one position in business and regional aircraft. High-performance aircraft and services set the standard of excellence in several markets, including: •

Business aircraft - Learjet, Challenger and Global aircraft families

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Commercial aircraft - new CSeries program, CRJ Series and Q-Series aircraft families

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Amphibious aircraft - Bombardier 415 and Bombardier 415 MP aircraft

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Jet travel solutions - Flexjet

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Specialized aircraft solutions - Bombardier aircraft modified for special missions

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Aircraft services and training - aircraft parts, maintenance, comprehensive training, services

technical

support

and

publications,

and

online

2. History 1922 - A Gift for Invention: B7 Snowmobile Launched in Montreal Canada

Today’s Bombardier grew out of a young mechanic’s inventive genius and entrepreneurial spirit. Born in 1907, Joseph-Armand Bombardier builds his first “snow vehicle” at the ripe age of 15. His motivation? To help people travel across the snowcovered roads of rural Québec in Canada. In 1937, J.-Armand achieves his first major commercial success with the launch of the seven-passenger B7 snowmobile. 1942 - Transforming Challenges into Opportunities Joseph-Armand Bombardier founds L’Auto-Neige Bombardier Limitée to manufacture the 12-passenger B12 snowmobile. Manufacturure tr4acked vehicles for transportation on snow covered terrain. A series of other snow-going vehicles follows for ambulance, freight transport, mail delivery and school transportation services. 1959 - Snowmobiling: A Brand-New Industry Bombardier enters mass production of the snowmobile the Ski-Doo 1964 - Joseph-Armand Bombardier only lives to see the first signs of the snowmobile’s phenomenal success. He dies in 1964, leaving behind a healthy and financially sound company. 1967 - Change its name to Bombardier Ltd 1974 - Bombardier wins its first mass transit contract to manufacture 423 cars for the city of Montréal’s subway system. 1981 - Company changed to Bombardier Inc. 1984 - Bombardier gains ownership of the diesel engine technology which powers its locomotives 1986 - A breakthrough $1 billion US contract to supply 825 subway cars for the New York City Transit Authority positions Bombardier as the North American leader in rail transit

1986 - Bombardier expands in Europe, the world’s largest rail equipment and services market, acquiring a 45% interest in the Belgian manufacturer BN Constructions Ferroviaires et Métalliques S.A. Bombardier enters the aerospace industry with the acquisition of Canadair 1990 - Bombardier makes a series of acquisitions that further strengthen its geographic and technological leadership in rail transportation. In 1990, it enters the U.K. market for the first time, acquiring Procor Engineering Limited, a manufacturer of body shells for locomotives and rail passenger cars. In 1992, it ventures into Mexico, acquiring rail rolling stock manufacturer Constructura Nacional de Carros de Ferrocarril. In 1995 and 1998 respectively, it acquires Waggonfabrik Talbot GmbH & Co. and Deutsche Waggonbau AG (DWA) , rail transportation equipment manufacturers in Germany. These acquisitions expand Bombardier’s foothold in Europe, the world’s largest rail market. •

Growing Stronger in Rail Transportation

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Becoming the World’s Third-Largest Civil Aircraft Manufacturer

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Ongoing Innovation in Aerospace

2000 - Bombardier acquires Skyjet.com, a pioneer in real-time online air charter reservations. Bombardier expands this service in 2005 with the launch of Skyjet International, giving travellers unrestricted access to more than 900 business jets worldwide. 2001 - Bombardier becomes the largest players in the international railway industry. Bombardier becomes number one in the global rail transportation industry 2002 - Bombardier moves its headquarters from Montreal, Canada to Berlin Germany. 2004 -2005 - Bombardier Transportation undergoes significant restructuring 2006 - Bombardier Transportation moves to new headquarters building in downtown Berlin - a historical building which was ones home of the Prussian Railway since 1895 In 2006, Bombardier establishes a manufacturing facility in Quéretaro, Mexico, for its aerospace business.

2008 - BT strategically realigns its organization into six Divisions from eleven: Systems, Rail Control Solutions, Services, North America

3. Location Planes. Trains. Worldwide.

Manufacturing, engineering and services facilities in 25 countries. A global network of service and support representatives. Bombardier Aerospace is a world leader in the design and manufacture of innovative aviation products and provides services for the commercial, business and amphibious aircraft markets. Bombardier Transportation is the global leader in the rail equipment manufacturing and servicing industry. Its wide range of products includes passenger rail vehicles and total transit systems. It also manufactures locomotives, bogies, propulsion and controls and provides rail control solutions.

Bombardier in Romania

Bombardier in Denmark

Bombardier in Japan

Bombardier in the USA

Bombardier in Germany

Bombardier Aerospace in Belfast

Bombardier Transportation in France

Bombardier T. in Switzerland

Bombardier in Sweden

Bombardier in Russia

Bombardier in China

Bombardier Transportation in Hungary

Bombardier T. in Czech Republic

W orldwide Presence

Argentina Australia Austria Belgium Brazil Canada China Czech Republic Denmark Finland France Germany Greece Hungary India Israel Italy Japan Malaysia USA

Mauritius Mexico Netherlands Norway Philippines Poland Portugal Romania Russia Singapore Slovenia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand United Arab Emirates United Kingdom

4. Financial Situation

Actuals in M $ Fiscal Period December

2009

Sales

Estimates in M $

2010

2011

2012

2013

2014

19 721

19 366

18 347

17 142

18 508

19 959

Operating income (EBITDA)

1 966

1 596

1 535

1 308

1 584

1 856

Operating profit (EBIT)

1 411

1 098

1 202

948

1 200

1 340

-

-

-

-

-

-

1 008

698

837

761

871

953

EPS ( $)

0,56

0,39

0,47

0,42

0,48

0,52

Dividend per Share ( $)

0,08

-

-

0,11

0,08

0,06

1,96%

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-

2,61%

1,94%

1,51%

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-

-

Pre-Tax Profit (EBT) Net income

Yield Announcement Date

04/02/2009 10:01am

5. CAPITAL STRUCTURE

04/01/2010 10:00am

03/01/2012 11:00am

We analyze Bombardier capital structure using global metrics, which are based on a broad economic view of the Corporation. BT manage and monitor the global metrics in a way as to achieve an investment-grade profile over the medium to longterm. These global metrics do not represent those required for bank covenants BT objectives with regard to the global metrics are as follows: · adjusted EBIT to adjusted interest ratio greater than 5.0; and · adjusted debt to adjusted EBITDA ratio lower than 2.5.

6. Functions and Organisational Charts This business is organized into 10 supporting Functions which offer expert support to all the business worldwide: • •

Claim Management Communications

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Contracts, Legal Affairs & Bid Approval

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Engineering (ENG)

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Finance

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Human Resources (HR)

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Health, Safety & Environment (HSE)

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Innovation Management

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Intellectual Property

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Information Services (IS)

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Project Management

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Quality, Operations & Procurement

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Sales and Business Development

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Strategy

“Become a world-class employer” Bombardier was recognized for its incredible range of career development opportunities at home and around the world - employing nearly 70,000 full-time employees worldwide and adding over 1,790 full-time employees in Canada alone last year. Bombardier also supports ongoing employee development through tuition subsidies for job-related courses as well as subsidies for professional accreditation, and in-house and online training programs. As we shape the evolution of mobility, the employees lie at the heart of the category-leading planes and trains," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. At Bombardier, ensuring that all the employees are highly trained, engaged and enabled, as well as healthy and safe, is a must for sustaining a dynamic workforce and a strong competitive advantage. Employees are arguably Bombardier's most important stakeholder group and key resource. With 70,000 employees in 40 countries around the world - including some 24,000 in Canada - Bombardier has taken decisive steps to transform how it manages this crucial stakeholder group in recent years, by harmonizing its people policies, programs, systems and tools. Investments in leadership and development training as well as wellness programs allow people to reach their highest potential while enhancing employee retention.

7. Corporate Social Responsibility The best way to understand the commitment to corporate social responsibility (CSR) is through all Bombardier’s products.

At Bombardier, the goal is to develop market-astute aircraft and trains that generate increasing social and economic value while consistently setting the benchmark for environmental performance. We call it the Evolution of Mobility. Guided by the Health, Safety and Environment Policy , the lifecycle-based product responsibility strategy drives the Evolution of Mobility. It leverages policies, directives, systems and tools that allow them to foster wealth and well-being by connecting people, businesses and nations, safely and comfortably, with sustainable mobility solution. At Bombardier, the product responsibility is overseen through engineering and is embedded within our Design for Environment, Design for Safety and innovation teams, comprised of highly skilled experts. Through these teams, their know-how and skills, they’re shaping the Evolution of Mobility in several ways.

PROGRESS

WHAT THEY DID

AEROSPACE

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At Aerospace, pursued deployment of the Safety Management System (SMS)

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New roadmap and structure for SMS and Advanced Safety Planning (ASP)

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Expanded Aerospace’s Safety Standdown forums to São Paulo, Brazil and Shanghai, China, in addition to the original Wichita, United States

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Deployed Safety Recognition Award

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Developed Safety 360° Report TRANSPORTATION

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Enhanced the support for the Center of Competence for Product Safety and confirmed management structure in each division

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Updated Product Safety Management documentation and created a common database for Transportation to collect product safety-related information

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Established plan to review database status every six weeks

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Launched training development in product safety for employees 2013 OBJECTIVES AEROSPACE

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Continue deployment of the SMS to achieve our 2015 full-implementation target and leverage our expertise to guide our industries

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Establish a total of 30 SMS Site Coordinators across Aerospace

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Communicate new Product and Operational Safety Policy

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Lauch Advanced Safety Planning (ASP) for CRJ Program

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Pursue continuous improvement of Aerospace's Safety Standdown forums and related communication with relevant industry stakeholders TRANSPORTATION

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Execute benchmarking of the achievements against other safety leaders in the industry

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Continue rigorous application of the measures undertaken in 2012 while tracking the number of open product-safety cases and the efficiency in resolving them

Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. The Group offers the broadest product portfolio and is recognized as the leader in the global rail sector.

A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2011, were $28.8 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. The entire organization is working together to: • • • •

develop key performance indicators improve the ability to track, compile and share accurate data roll out effective action plans to support our CSR commitment help employees, suppliers and other partners understand our CSR commitment and what they can do to reinforce it More information are available at www.bombardier.com.